06-08-1992 Council Packet - Laserfiche WebLink

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TO: PROM: DATE: Mayor and City Council //f Ron Moorse, City Administrator May 29, 1992 SUBJECT: Use of CDBG Funds for Stubbs Bay Connection Costs 'VX Sewer Service As directed by Council, staff has met with Hennepin County CDBG staff to determine whether CDBG funds can be used to assist low and moderate income* residents with their sewer assessment costs. The CDBG funds can be used to fund sewer assessments, but with several significant restrictions; 1. The entire sewer service area must be analyzed to determine whether the area falIs within income guidelines. 2. The funds must be used to pay the total assessment amount. They can not be used to pay only a portion of the assessment. This would severely limit the number of residents who could receive assistance. An alternative is to use the CDBG funds to pay the cost of installing the sewer service from the sewer lateral to the residence. This cost is approximately $1,500 to $2,000. This alternative does not require an income analysis of the entire area. However, all recipients mr.st meet income guidelines. The Counci 1 has three options for the use of CDBG funds for sewer service connection costs* 1. Reallocate the 1992 housing rehab funds. 2. Wait until 1993 to allocate funds toward the sewer connection costs. 3. Allocate both 1992 and 1993 CDBG funds toward the sewer service connection costs. Many residents will not be connecting to the sewer until the 1993 construction season. The CDBG staff have indicated there currently are residents on a waiting list for 1992 housing rehab funds. Council Action Requested. 1. Motion authorizing staff to proceed with a process to accept applications for CDBG funds. 2. Motion indicating which year's CDBG funds are to be allocated toward the sewer service connection costs.